parentshiftbook Chapter 157: Ensure Supply, Reduce Issuance, And Solve Inflation [Please Subscribe, Please Subscribe
Chapter 157: Ensure Supply, Reduce Issuance, And Solve Inflation [Please Subscribe, Please Subscribe
[Too many Tongbao banknotes were issued during the Ming Dynasty?!!]
[We can no longer issue Ming Dynasty Tongbao banknotes at will?!!]
[We can’t copy hundreds of millions of Ming Dynasty currency notes in one day?!!]
[Are we still the same pauper who can’t even take out a million taels casually?!!]
In fact, Zhu Yuanzhang didn't understand much of what Yan Changqing said at the end, such as "comprehensive and sustained rise in the general price level", "inflation" and "decline in purchasing power".
After Yan Changqing explained so much, he only understood two things.
First, no one embezzled fifteen cents from tens of millions of Ming people.
Second, he copied too many Ming Dynasty Tongbao banknotes, and he could no longer continue to copy Ming Dynasty Tongxu Baobao.
In other words, he can no longer print or distribute money at will.
He would not be able to possess Ming Dynasty currency notes equivalent to the value of hundreds of millions of gold, silver, and copper in one day.
"Then sir, how should we solve this inflation so that we can restore Ming Dynasty's credibility?!!"
Zhu Di stood up again and asked respectfully.
One thing to say, in fact, Zhu Di did not fully understand the last words Yan Changqing said.
But there is one thing Zhu Di knows very well, that is, whatever problem occurs, he must solve it.
It doesn't matter if he doesn't fully understand inflation now. He will solve the problem of inflation first.
After all, Ming Dynasty's inflation will affect the level of Ming Dynasty's credibility, and the level of Ming Dynasty's credibility is directly related to the survival of Ming Dynasty.
After solving the problem of inflation first, he would still have a lot of time to slowly study what Yan Changqing said about inflation.
Yan Changqing turned around and wrote the four characters "Inflation" and "Deflation" under "Credibility" on the wooden rice paper behind him.
Then, Yan Changqing turned to look at Zhu Yuanzhang, Empress Ma, and the princes Zhu Biao, Zhu Fang, Zhu Fan, Zhu Di, etc., and explained again:
"The meaning of inflation has just been said, which is the phenomenon of comprehensive and continuous rise in the overall price level arising from the operation of social economy.'
"The direct cause of inflation is that the number of Ming Dynasty currency notes issued by His Majesty exceeds the number of Ming Dynasty currency notes required for current circulation and transactions in Ming Dynasty society."
"The specific manifestations of the phenomenon of inflation are: rising prices, depreciation of banknotes, and overheating of the economy."
"But the essence is that the total social demand is greater than the total social supply!!!"
Having said this, Yan Changqing paused, giving Zhu Yuanzhang, Empress Ma, and the princes Zhu Biao, Zhu Di, Zhu Fan, Zhu Di and other princes some time to digest and absorb.
Then, Yan Changqing took the previous example again and further explained:
"Just like the example I just gave, I have only ten glass beads in my hand. The original price is one hundred Wenbao notes, while His Highness the King of Chu and His Highness the King of Qi both have one thousand Wenbao notes in their hands. They both want to I want to buy more glass beads.”
"So in order to buy the glass beads in my hand, His Royal Highness the King of Chu and His Highness the King of Qi had to pay a higher price to buy them. As a result, the two-hundred-wen treasure note was only worth the original one-hundred-wen treasure note.
"The total number of glass beads that His Highness King Chu and His Highness King Qi want to purchase is greater than the total number of glass beads that I can provide. This is the so-called total social demand greater than the total social supply."
After listening to such an easy-to-understand example given by Yan Changqing, Zhu Yuanzhang, Empress Ma, and the princes Zhu Biao, Zhu Di, Zhu Fan, Zhu Di and other princes suddenly became enlightened.
[That’s it! I want to buy more things than others can let me buy. It turns out that this is called the total social demand being greater than the total social supply!!!]
[If we say this, then it means that the people of the Ming Dynasty currently want to buy more things than the merchants of the Ming Dynasty can provide for purchase. 】
[This led to the phenomenon that the people of the Ming Dynasty increased their purchases and prices rose, which in turn led to the depreciation of the Ming Dynasty treasure banknotes, and the so-called "money is worthless". 】
[If this is the case, then does it mean that more things are provided for the people of Ming Dynasty to buy, so that everyone in Ming Dynasty can buy what they need at the original price, so that the so-called inflation problem can be solved?!!]
Looking at Zhu Yuanzhang, Empress Ma, and the princes Zhu Biao, Zhu Di, Zhu Fan, Zhu Di and other princes with expressions of sudden enlightenment on their faces [Yan Changqing nodded with satisfaction. Ji Guodao:
"As just mentioned, when the total social demand is greater than the total social supply, it will lead to inflation."
"But in the example just now, if I have ten more glass beads in my hand, there will be a total of twenty glass beads, and it will still be one hundred cultural treasures."
"Then even if His Royal Highness the King of Chu spends all the thousand coins in his hand, he can't buy all the glass beads in my hand."
"Faced with this situation, His Highness Prince Qi naturally doesn't have to worry about not being able to buy colored glaze beads, so he has to pay more for them.
"In this way, one thousand cash notes can still be used to buy ten glass beads for the price of one hundred cash notes, just like before.
“The value of the thousand-wenbao note is still the same as the previous one-thousand-wenbao note and has not depreciated.
"If the treasure banknotes had not depreciated in value, then the people of the Ming Dynasty would naturally not think that His Majesty and the Ming Dynasty court had defrauded them of their money."
"Naturally, the Ming people's trust in Your Majesty and the Ming court will increase again, and then return to the original 100% credibility!!!"
"To use a phrase you are most familiar with, it means keeping the people's support!!!"
"The people's support has not been lost, which means that the credibility of Your Majesty and the Ming Dynasty is still strong, and the people of the Ming Dynasty will continue to support your Majesty and the Ming Dynasty court."
"In this way, the country of Ming Dynasty will naturally be stable and unstoppable."
"This is the most important and fundamental step in solving inflation - ensuring supply!!!"
"Ensure that the total supply of Ming society can meet the total needs of the people of Ming Dynasty and is equivalent to the total needs of the people of Ming Dynasty!!!"
As soon as Yan Changqing finished talking about the first step to solve inflation, Prince Zhu Biao couldn't wait to ask:
“What about the second step?!!”
Yan Changqing took a sip of tea and moistened his throat before continuing:
“The second step is to issue less!!!”
"343 As I just said, the direct cause of inflation is the excessive number of Ming Dynasty currency notes issued by His Majesty, which exceeds the number of Ming Dynasty currency notes required for current circulation and transactions in Ming Dynasty society."
"In this case, it is natural to reduce the number of Ming Dynasty currency notes issued, reduce fiscal expenditures, increase taxes, etc."
“There is only one ultimate goal, and that is to reduce the number of Ming Dynasty currency notes currently circulating and traded in Ming Dynasty society.
"When the number of Ming Dynasty currency notes circulating and traded in Ming Dynasty society decreases, the value of Ming Dynasty currency notes will naturally increase again."
"It's still the glass bead example I just gave."
"If the number of Ming Dynasty banknotes in the hands of His Royal Highness the King of Chu and His Highness the King of Qi decreases to only 700 Wen banknotes, then the degree of depreciation of the Ming Dynasty banknotes will naturally be smaller than the depreciation of the Ming Dynasty banknotes of 1,000 Wen."
"However, whether it is to ensure supply or reduce issuance, the methods adopted by the court must be gentle and slow, and cannot be simple, crude, and one-size-fits-all."
"Otherwise, not only will the problem of inflation not be solved, but it may also cause resentment among the people of Ming Dynasty!!!"
"At that time, let alone restoring the credibility of the emperor and the imperial court, it would be good if the credibility of the emperor and the imperial court is not further reduced."
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